FOREX Scam: How to Catch a Scammer

By: Jovan Vucetic
Submitted: 2007-01-17 16:15:09
Print this article | For publisher | Social Bookmarking
Rating:
 

FOREX is huge business. It’s the mamma of all industries. Almost $3 trillion dollars is exchanged on the Forex currency market every day. With all that money going around, it’s no surprise that there are scammers and hyenas everywhere. You don’t hear of too many scams in the Bonsai tree market, do you?

There is a forex scam problem in the education section of the market in particular, because it isn’t as regulated as the other sections – the forex dealer, broker, institution side. The latter need licenses, government certificates etc., to operate. However, these so called “forex gurus” that show you how to make a killing following their trading systems - they don’t need any certification to operate. They spring up like weeds and no one really keeps them in check.

Ok, I’m going to show you now a quick 1 minute test that you can do to spot if a product, company or a “guru” is a forex scam. Don’t do or buy anything until you do this:

Go to google and search:

“Name of product/person” and forums

“Name of product/person” and scam

“Name of product/person” and refund

People who have been scammed usually complain in forex chat forums. People who want to purchase forex products also visit these forums to hear the opinions of others. There are also a few independent websites around which keep tabs on these scammers. You’ll dig up a lot of good, quick information and if you don’t and the company or product has been around in the market for a while, you are most likely fine and it’s all legitimate.

Other things to do? Use COMMON SENSE.

1. Price. If they’re selling an educational product and the price is too low it could be a ‘teaser’ type, meaning they’re trying to catch you only to sell you something more expensive later. If its way too expensive – it’s an automatic red flag.

2. Refund. If there is no money back guarantee, don’t even bother. Move on.

3. Pages. Don’t be fooled by pages. If they are advertising their product with “You Get 14352” pages as their main selling point, it’s a forex scam. They’ve more likely than not copied the information from some freely available place where you could find it as well. There is probably no original content there. Why would it take someone 14534 pages to explain something that they’re supposedly an “expert” about?

Common sense. That’s all it is. Unfortunately, that is the only safeguard available to the retail forex participant.

Jovan Vucetic runs Margin-Strategies.info which provides unbiased reviews of Online Forex Trading Systems. Margin-Strategies.info is about helping the Forex trader develop both mind and method.

Article source: Expert Articles

Most Recent Articles in Currency Trading category

  • How Forex Brokers Can Become Natural Enemy To The Traders? - By: Cristian Stan
    If you are a beginner to Forex trading, then first thing you should learn about is the Forex broker. While trading, you must do a lot of research about the market trends.
  • Forex Trading Comes to the Rescue in the Time of Recession - By: Cristian Stan
    It is since the last year that the economy is in a negative state and the worst seen is that this downfall is heading even towards the developing economies.
  • How Can Your Forex Broker Be your Worst Enemy? - By: Cristian Stan
    First thing that you must learn about Forex trading market is to find the right broker for yourself. What do you understand by a Forex broker? A Forex broker is simply the middleman between the seller and the buyer involved in any transaction.
  • How to Maximize Profits from Forex Alert Services - By: Cristian Stan
    There are various Forex trading alert services those can be used to get various alerts so as they can be used so as to minimize the losses and maximize the loss that is possible while the trading is done.
  • Importance of Forex Software in Forex Trading - By: Cristian Stan
    Currency trading also known as "Forex trading" refers to exchange of one currency for other. Forex trading is always suited for beginners as there is less major currency to trade as compared to trading in stocks where you have to trade between tens of thousands of stocks.
  • Importance of Pivot Points in Forex Trading - By: Cristian Stan
    The technique to use pivot point in Forex trading has come from previous generations who used to trade through pivot points. Then they need to calculate these points based upon the market trends themselves but due to technological advancements computer can perform the same for you now.
  • Forex Capital Markets - By: Cristian Stan
    Foreign exchange or Forex is the conversion of one currency to another. As a business venture, one can have the opportunity to earn easily depending on the amount of information available to him such as the current Forex rate among other things, and on how you can use such information into a clever business move.
  • Forex Made Easy - By: Cristian Stan
    With the popularity of Forex nowadays, it's not shocking that many people want to jump into the bandwagon, so to speak. Nevertheless, it's not only a matter of raising up money and diving right in.
  • Foreign Exchange Platforms - By: Cristian Stan
    A Foreign Exchange platform is computer software that serves as a channel of Forex market information used for online Forex trading. A platform gives information like the current exchange rate of currencies and other charts and data regarding the Forex market.
  • Forex Education - By: Cristian Stan
    It can be said that Forex trading is a consistently fast-growing business of the 21st century. It has gained a reputation as a great career option for many young businessmen and women due to its nature. Besides its manageability, the Forex market boasts of its size, liquidity and high potential profits.